What is remortgaging?
Remortgaging means replacing your existing mortgage with a new deal, either with your current lender (a product transfer) or by switching to a different one, without necessarily moving home.
Most people remortgage when their initial fixed or tracker deal is ending, to avoid dropping onto the lender's standard variable rate, which is typically several percentage points higher.
It can also be used to release equity for home improvements, debt consolidation or a deposit for another property, borrowing against the value your home has gained.
How does remortgaging work?
You start comparing deals three to six months before your current one ends, since most offers are valid for that long and rates can be locked in early.
A new lender assesses your income, credit file and the property's current value, much like an initial mortgage application, though it's usually quicker if you're not increasing the amount borrowed.
Here's a fictional example:
Meet Kwame, remortgaging after his fix ends
Kwame's two-year fix at 3.9% is ending, and his lender's SVR would jump to 7.74%, adding roughly £280 a month to his repayments on his £180,000 balance.
He remortgages three months ahead of the deadline onto a new two-year fix at 4.65%, avoiding the SVR entirely and only adding about £55 a month compared with his old rate.
Because his home has risen in value, his loan-to-value has also improved, qualifying him for a better rate band than he had at his last renewal.
What are my remortgaging options?
Product transfer
Switching to a new deal with your existing lender, usually with less paperwork and no new affordability check.
Often faster, though it's worth comparing against the wider market first — loyalty rarely gets you the cheapest rate.
External remortgage
Moving to a new lender entirely, which requires a fresh application, valuation and legal work.
Can unlock better rates, but usually takes longer and may involve legal and valuation fees.
Further advance
Borrowing more from your existing lender on top of your current mortgage, often at a different rate.
Useful for smaller top-ups without disturbing your existing deal.
Equity release remortgage
Increasing your mortgage to release cash from the equity you've built up.
Increases your overall debt and monthly payment, so it needs careful affordability checking.
Should I remortgage?
Remortgaging is usually worth exploring when:
- 1
Your current deal is ending soon
Starting the search three to six months ahead avoids ever paying the lender's SVR.
- 2
Your home has grown in value
A lower loan-to-value band can unlock meaningfully cheaper rates than you had before.
- 3
You need to release equity
For renovations, debt consolidation or a deposit, provided the extra borrowing remains affordable.
What do I need to remortgage?
Lenders will typically want to see:
Up-to-date payment history: A clean record on your existing mortgage strengthens your application considerably.
Current income evidence: Payslips or accounts, since affordability is reassessed as if you were a new customer.
An up-to-date property valuation: Determines your loan-to-value and therefore which rate bands you qualify for.
A stable credit file: New debts or missed payments since your last mortgage can affect the rates on offer.
Awareness of your existing deal's exit terms: Check for early repayment charges before switching ahead of your fix ending.
How to compare remortgage deals
Look past the headline rate and check these five things:
- 1
Initial rate vs the follow-on rate
A cheap two-year fix can revert to a lender's standard variable rate of 7% or more once it ends, so know the exit point before you sign.
- 2
Fees, not just the rate
A lower rate with a £1,999 product fee can cost more overall than a slightly higher fee-free deal, especially on smaller loans.
- 3
Overall cost over the deal period
Compare the true cost of the initial period — rate, fees and any cashback combined — rather than the rate in isolation.
- 4
Early repayment charges
Fixed and tracker deals typically lock you in with charges of 1-5% of the balance if you remortgage or overpay heavily before the term ends.
- 5
Flexibility
Look for free overpayment allowances (usually 10% a year), porting rights if you move home, and payment holiday options.
Remortgaging pros and cons
Pros
- Avoids the lender's expensive standard variable rate
- Can release equity for other goals
- Rising home values can unlock cheaper rate bands
- Rates can be locked in months in advance
Cons
- Early repayment charges may apply if you switch mid-deal
- Legal and valuation fees can apply on some deals
- Releasing equity increases total debt and interest
- A falling property value can worsen your loan-to-value
Remortgage now or wait for rates to fall?
Waiting for rates to drop can pay off, but it's a gamble — rates can just as easily rise, and most lenders let you lock in a rate up to six months ahead while still allowing a switch if a better deal appears before completion.
If your current deal has already ended or is about to, the cost of sitting on the SVR while you wait usually outweighs any potential future saving.
A sensible middle ground is securing a deal now that can be reviewed or swapped before it completes, rather than risking months on a lender's default rate.
What happens if I can't keep up mortgage repayments?
Missing payments on your remortgage is reported to credit reference agencies and can ultimately put your home at risk, since the property is used as security for the loan.
Contact your lender as soon as you think you'll struggle. Under FCA rules, lenders must treat customers in financial difficulty fairly and can often offer a temporary reduced payment, a term extension or a short payment holiday.
Free, independent guidance is available from MoneyHelper and Citizens Advice, and speaking to your lender early keeps far more options on the table than waiting until arrears build up.
What are the alternatives to remortgaging?
If remortgaging isn't right for you, consider:
Doing nothing and reverting to SVR
Rarely the cheapest option, but can suit those planning to sell or pay off the mortgage very soon.
A secured loan against your home
Keeps your existing mortgage rate untouched while borrowing additional funds separately, though often at a higher rate.
Overpaying your current deal
If your existing rate is competitive, overpaying within your allowance reduces the balance without switching.
FAQs
About this guide
Written and reviewed by the Grow Your Business team, and kept up to date as rates, rules and provider terms change.
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